Alliance Laundry Holdings Inc.

Where It Passes

Where It Falls Short

• Valuation0% pass✓ 2✗ 26▾

  No clean pass — all 13 investors flag at least one valuation criterion

  Net income / market capitalization+4.55%; #1826/6340 (top 28.8%)

  ✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Price / 3-yr avg EPS43.5x

  ✗Graham<= 15x

  Price-to-Book Ratio11.9x

  ✗Graham<= 1.5x

  P/E x P/B518.20

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)8.81

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value7.0%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=7.0%, ROC=95.1%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS42.2x

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)22.1x

  ✗Dreman< 8x

  Price / Book Value per Share11.9x

  ✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Valuation ReasonablenessP/E=42.2x, OE Yield=3.0%

  ✗MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldP/E=42.2x, FCF Yield=3.4%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=42.2x, P/B=11.9x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-189.9% (IV=$8.15 vs Price=$23.63)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share29.6x

  ✗Ackman<= 25

  Price vs. Trailing Low116% of trailing low ($20.35)

  ✓Templeton<= 120% of trailing low (certified split-adjusted live window)

  Positive book equity / market capitalization+0.1057; #4711/6449 (top 73.1%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS42.2x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per ShareN/A (non-positive TBVPS)

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change

  ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+0.3876; #2955/5247 (top 56.3%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+5.98%; #1364/4519 (top 30.2%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-0.92%; #2849/6202 (top 45.9%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Valuation models0% pass✗ 11▾

  ALH overvalued: all 11 models price fair value below $23.63 (median $8.47)

  Graham fair value$5.00

  ✗Graham-372.6% margin vs $23.63

  Buffett fair value$8.47

  ✗Buffett-179.0% margin vs $23.63

  Lynch fair value$2.68

  ✗Lynch-781.7% margin vs $23.63

  Greenblatt fair value$11.15

  ✗Greenblatt-111.9% margin vs $23.63

  Dreman fair value$8.15

  ✗Dreman-189.9% margin vs $23.63

  Munger fair value$12.93

  ✗Munger-82.8% margin vs $23.63

  Pabrai fair value$12.50

  ✗Pabrai-89.0% margin vs $23.63

  Akre fair value$15.41

  ✗Akre-53.3% margin vs $23.63

  Marks fair value$8.15

  ✗Marks-189.9% margin vs $23.63

  Ackman fair value$22.75

  ✗Ackman-3.9% margin vs $23.63

  Templeton fair value$8.15

  ✗Templeton-189.9% margin vs $23.63
• Debt & Leverage8% pass✓ 1✗ 14▾

  11 of 12 flag ALH's debt & leverage — Graham, Buffett, Lynch +8 more

  LT Debt vs Net Current Assets

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest Coverage

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity

  ✗Lynch< 0.33

  Cash - Long-term Debt

  ✗LynchPositive preferred

  LT Debt / Total Assets Change0.00% -> 0.00%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.35

  ✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity

  ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x

  Debt Levels

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=2.1x, D/EBITDA=N/A

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)

  ✗AsnessTop 30% of eligible cross-section
• Growth13% pass✓ 5✗ 8▾

  7 of 8 flag ALH's growth — Graham, Lynch, Dreman +4 more

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)8.81

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR4.8%

  ✓Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthInv: 9.2% vs Rev: 13.3%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction$0.51 (2023) -> $0.56 (2025)

  ✓DremanPositive over recent years

  EPS CAGR4.8% CAGR over 2 years

  ✗Dreman> 5% annualized

  Positive Net Income Frequency3/3 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth11.9%

  ✓Ackman>= 5%

  Positive EPS Growth Frequency1/2 years with positive EPS growth

  ✗AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 34.7% -> 37.6%, operating margin 17.3% -> 18.6%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Efficiency13% pass✓ 2✗ 9▾

  7 of 8 flag ALH's efficiency — Graham, Buffett, Piotroski +4 more

  Current Ratio1.35

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)

  ✗Buffett> 10%

  ROIC - WACC

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)95.1%

  ✓Greenblatt> 25%

  Current Ratio Change YoY1.40 -> 1.40

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.53x -> 0.59x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities1.35

  ✗Dreman> 1.5

  Return on Invested Capital

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=unavailable; FY2024: ROIC=unavailable; FY2025: ROIC=unavailable

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)

  ✗SleepROIC > 12% in a majority of years
• Verdicts14% pass✓ 2✗ 12▾

  Split decision: 12 FAIL · 3 NEUTRAL · 1 PASS

  Overall verdict

  ✗GrahamFAIL (1/9)✗BuffettFAIL (1/9)✗LynchFAIL (4/7)✓GreenblattRank #251•PiotroskiNEUTRAL (F-Score 7)✗DremanFAIL (4/11)✗MungerFAIL (0/4)✗PabraiFAIL (0/3)✗AkreFAIL (2/6)✗MarksFAIL (2/5)✓AckmanPASS (5/9)✗TempletonFAIL (3/8)✗SleepFAIL (2/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (1/6)✗SchlossFAIL (0/7)•OshaughnessyNEUTRAL (Not ranked)
• Profitability25% pass✓ 16✗ 19▾

  12 of 16 flag ALH's profitability — Graham, Buffett, Lynch +9 more

  Net income / market capitalization+4.55%; #1826/6340 (top 28.8%)

  ✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive EPS (10 years)3/4 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)3/4 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)21.0%

  ✓Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$141.8M

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)8.81

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR4.8%

  ✓Lynch15-30% (Fast Grower); > 0% to pass

  ROE43.1%

  ✓Lynch> 15%

  EBIT / Enterprise Value7.0%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=7.0%, ROC=95.1%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets3.53%

  ✓PiotroskiROA > 0

  ROA Change YoY3.47% -> 3.53% (delta: +0.05%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=7.34%, ROA=3.53%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY36.5% -> 37.6%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue15.5%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity43.1%

  ✓Dreman> 12%

  Margin of SafetyP/E=42.2x, P/B=11.9x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity21.0% (3-yr avg)

  ✓AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-189.9% (IV=$8.15 vs Price=$23.63)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency3/3 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue19.6%

  ✓Ackman>= 15%

  Net Income / Shareholders Equity43.1%

  ✓Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend17.3% (2023) -> 18.6% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 34.7% -> 37.6%, operating margin 17.3% -> 18.6%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  Gross profit / total assets+23.53%; #1815/3702 (top 49.0%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+43.06%; #261/5226 (top 5.0%)

  ✓AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Cash Flow50% pass✓ 7✗ 5▾

  5 of 10 pass — Buffett, Dreman, Pabrai +2 more object

  Free Cash Flow Proxy$141.8M

  ✗BuffettPositive and growing

  FCF Positive and Growing$158.0M

  ✓LynchPositive and growing

  Operating Cash Flow$211.7M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=7.34%, ROA=3.53%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)22.1x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=42.2x, FCF Yield=3.4%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive3/3 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap5.9%

  ✓Ackman>= 4%

  Price / FCF per Share29.6x

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency3/3 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$277.4M

  ✓Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization+5.98%; #1364/4519 (top 30.2%)

  ✗OshaughnessyTop 10% of eligible cross-section